Avoiding CGT by becoming non-resident

E

ExpatPortugal

Registered User
Messages
1
Hi,

I'm looking at becoming non-tax resident in Ireland with a move to Portugal.

Has anyone ever done this before? I'm looking for some general type advice/feedback?
 
I've spoken with a friend who spends a lot of time in Portugal, he says that all worldwide income would be taxed if a resident of Portugal, similar to U.S. citizens, simply moving residence will not let you escape the wrath of the Portugese taxman, suggest you get some advice direct from an Accountant based in Portugal, all else is really hearsay and not firm enough for you to make big decisions.
 
Hi ExpatPortugal. The Portuguese government operates a scheme whereby someone becoming a resident pays no income tax for 10 years. The Revenue grab some back over 3 years. Professional advice would be needed.
 
Moving abroad simply to avoid paying tax is a bad idea - you need to have better reasons than that. Uprooting and going to live in another country might sound easy and simple but visiting a country on holiday, even long holidays, does not prepare you for living in a different culture.

I am not saying don't do it but having lived abroad for over 30 years it always amazed me how different even nearby countries are - it is exciting and mind-opening to do this but do think long and hard about all the consequences and not just looking at the possible tax savings
 
It really depends on what type of CGT you are trying to avoid. If it is Irish land or buildings then you'll be liable to CGT regardless of where you live. The same applies for shares deriving the greater part of their value from Irish land. Additionally there is a 5 year CGT deemed disposal if you become resident. I'd talk to a specialist tax adviser who is familiar with the Portuguese rules and go through everything in detail.
 
The regime that I believe that you are referring to is the "non habitual residence" status. This is available in both Portugal and Malta in different forms. The Portugal version requires that you have not been resident in that country for the previous 5 years. You can receive your pension there without any tax. The income from dividends and property is also receivable tax free. All income originating from Portugal is subject to local taxes. The regime will allow you to live there for ten years without taxation as per the regulations. You need to get specific advice on this approach. You have to be resident in Portugal for 183 days per year. You have to have a home there, this can be a leasehold or a freehold property. But its a good option for anyone with a decent pot.
 
You must log in or register to reply here.
Back
Top